Define the causes and effects of exchange rates

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Reference no: EM133710915

Question: Define the 5 causes and 5 effects of exchange rates in the economy and give a real-life example for each.

Causes:

1. Interest Rates
2. Inflation Rates

3. Trade Balances

4. Speculation

5. Political Stability and Economic Performance

Effects:

1. Import and Export Competitiveness

2. Inflation

3. Foreign Investment

4. Domestic Economic Growth

5. Balance of Payments

Reference no: EM133710915

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